People treat credit card debt like a disease. They don't care about it until
things get out of hand and considerably threaten their lives. How to eliminate
the credit card debt as soon as possible? If this question is bothering you,
read on. In this article we present a simple 3 step proactive approach to get
rid of credit card debt.
Step 1: List and arrange
List all your credit cards in a table with their details. The details to be
recorded are the outstanding balance, interest rates, minimum payments, and
repayment dates. Arrange them in decreasing order of interest rates. Now you
have a list with credit card that charges the most on its balances at the top.
Move on to the next step.
Step 2. Set up a payment schedule
Add up all the minimum payments of credit cards. From your monthly budget
allocate a money which is about double the total that comes after adding the
minimum payment. Now, pay the minimum payments of all credit cards except the
card with highest interest rate. For this credit card pay the remaining amount
of money allocated for credit card payment. If bothered by the varying repayment
dates, automate the repayment process using your bank account.
Step 3: Eliminate all debt one by one
Thus, you will end the highest interest rate debt first, now continue with
the second highest rate card and so on. Each month you will require less amounts
for credit card debt elimination as the debt reduces.
To prevent accumulation of credit card debt in future make sure not to
indulge excessively. Keep a track of high interest rate credit cards, and
transfer their balance to a low interest rates or 0% intro APR credit cards.
Don't miss out on repayments and invite penalties. Try to pay cash for most of
your purchases and stay within your budget.